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Enforcement Rules of the Customs Post Clearance Audit Procedure

Article 1   
This Enforcement Rules is defined under the provisions of Article 13 Paragraph 5 of the Customs Law.

Article 2  
The term “post clearance audit” herein provided refers to the audit procedure conducted by the customs authority within two years from the day following the release date of the imported or exported goods. The customs may require the duty-payer, the cargo exporter or its related party (hereafter referred as the party under audit) to provide all records, documents, accounting journals and computer files or database information related to the disputed exported or imported cargo, or require the presence of the party under audit at the customs office for questioning, or appoint a customs inspector to conduct an on-site inspection at the premises of the party under audit.

The term “premises” stated in the foregoing paragraph refers to the place of residence, business address, operations site, production and business facility and place where the related products, records, documents, accounting journals, computer files and other information are stored or located.

The scope of the post clearance audit procedure stated in Paragraph 1 covers the product name, duty paid price, FOB value, tariff number, quantity, place of production, conditions qualifying applicant for duty exemption or reduction, bonded facilities or products, duty offset and refund, and matters related to the customs coordinated execution of control measures.

Article 3  
The customs may select any of the following cases for post clearance audit execution:

1. Imported cargo. 
2. Exported cargo. 
3. Bonded facilities or goods. 
4. Duty offset and refund cases. 
5. Other matters related to Customs Act regulations.

Article 4  
Upon selection of a case for post clearance audit, the customs should notify the party under audit of the post clearance audit procedure within six months from the day following the release date of the imported or exported cargo. The following operating procedures may be observed depending on the requirements of the case: 
1. Prior to the execution of the post clearance audit procedure, the customs should include the following information in the official post clearance audit notice issued to the party under audit. 
1.1 The reasons and legal grounds for executing the post clearance audit procedure, 
1.2 The name or title, place of residence, business address, operations site, production and business facility of the party under audit, 
1.3 Date and place of audit, 
1.4 Accounting journals, receipts and other documents to be prepared for examination, 
1.5 The appointed representative or agent of the party under audit, 
1.6 Processing of audit refusal, and the 
1.7 The agency conducting the audit. 
2. Where an audit meeting is necessary, all related parties and the party under audit should be invited to attend such meeting. 
3. Upon the requirement of the case, the party under audit may be requested to fill out a questionnaire. 
4. Where an on-site examination is conducted in the premises of the party under audit, the following rules should be observed:
4.1 At least two auditors should be sent to conduct the audit, and where circumstances require, related business personnel should also be present during the audit. 
4.2 The auditors should present their official MOF customs auditor ID for identification, as well as verify the identity of the person(s) being interviewed. Where person under interview is a representative, the auditors should verify identity and the extent of the power of attorney granted to the representative. 
4.3 The auditors should prepare a report of the interview and present such report to the party under audit for acknowledgment and signature. 
5. The customs should issue a receipt for all documents, information or goods received from the party under audit; moreover, all such items should be returned to the party under audit within 14 days from the day after the submission of all requirements. However, under special circumstances approved by the customs office director, the return of these items may be delayed for a period dictated by actual requirements; under which circumstances, an official notice is issued to the party under audit stating the reason for such delay. This provision is not applicable where documents submitted are photocopies. 
6. Upon the conclusion of each case, the auditors are required to prepare an audit report detailing the full audit results.

Article 5  
The customs may exercise the following powers during a post clearance audit procedure: 
1. Peruse, transcribe, photocopy, reproduce all imported or exported cargo related records, documents, receipts, accounting journal and computer files or database of the party under audit; as well as obtain samples, brochures or instruction manual of the imported or exported cargo. 
2. Enter the premises of the party under audit and examine all export and import trading related production, business, warehouse management, sales and distribution operations. 
3. Interview the responsible person, representative, and other related parties of the party under audit, and maintain a record of all such interviews. 
4. Seize all cargo that are found to have violated the regulations of the Customs Anti-Smuggling Act, and issue a cargo seizure receipt as provided in the Article 22 of the Customs Anti-Smuggling Act. 
5. Issue a letter of request to all related government agencies and institutions demanding the provision of information and documents related to the imported or exported cargo. 
6. Other authorities granted by other related laws and regulations.

Where the customs authority should find it necessary to conduct further investigations into the documents and information received from the party under audit, the customs authority may require the party under audit to submit a letter of consent allowing the customs authority to obtain the related information of imported or exported cargo from the bank.

The acquisition, management and return of sample goods are governed by the related provision of the Criteria Governing the Inspection and Examination of Import and Export Goods and the Directions for the Inspection and Examination of Import and Export Goods.

Article 6  
In the event that the party under audit should evade, obstruct or refuse to provide required information during the course of the post clearance audit procedure, the customs authority may employ Article 75 of the Customs Act and impose a fine between Three Thousand NT Dollars and Thirty Thousand NT Dollars. Repeated penalty fines may be imposed on the repeated refusal actions of applicant.

Article 7  
In the event that the customs authority should discover the presence of a serious tax evasion violation during the course of the post clearance audit procedure, the customs authority may work together with the tax authorities and other related authorities in conducting or organizing a task force for a joint audit procedure.

Article 8  
The customs may institute the following during the production of the post clearance audit report: 
1. Require the party under audit to submit additional duty payments or effect a duty payment refund according to the provisions of related regulations. 
2. Where the party under audit is found to have violated the provisions of the Customs Act, the Customs Anti-Smuggling Act, or other governing laws, impose the pertinent penalties or fines. 
3. Where the party under audit is found to have violated other governing laws, violation should be reported to the competent governing authorities for proper treatment.

Article 9  
The customs authority is to desist from leaking or disclosing any confidential information of the party under audit discovered or encountered during the course of the post clearance audit procedure; moreover, customs should desist from infringing on the legitimate rights and interests of the party under audit.

Article 10   
The definition of the operating rules and regulations of this Enforcement Regulations are subject to the discretion of the Directorate General of Customs under the Ministry of Finance.

Article 11  
This Enforcement Rules takes effect immediately upon enactment.

NOTE
In case of any discrepancy between the English version and the Chinese text of this Statute, the Chinese text shall govern.

  • Date:2012-12-12
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